Colgate-Palmolive (CL) AI Stock Analysis

• Market Cap: $72.38B
• Dividend Yield: 2.67%
• Average Volume (3M): 6.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -0.05%
• EPS Growth: 2.49%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.95
• Shares Outstanding: 801,548,030
• 10 Day Avg. Volume: 6,792,863
• 30 Day Avg. Volume: 6,607,919
• PEG Ratio: -1.19
• Price to Book (P/B): 1.18K
• Price to Sales (P/S): 3.14
• P/FCF Ratio: 17.58
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.87
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 20.89
• 1Y Price Target: $97.53
• Price Target Upside: 8.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 3.87
• Revenue Forecast (FY): $21.30B

• Rating: 61 Neutral
• Price Target: $93.00 ▲(2.99% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven mainly by strong cash-flow generation and a durable revenue base, partially offset by elevated balance-sheet risk (high leverage vs. very thin equity). Technical indicators are weak and weigh on the rating, while valuation is mixed (reasonable yield but negative P/E). The earnings call supports steady execution (Hill’s/emerging markets strength) but highlights meaningful near-term uncertainty and a wide guidance range.

Positive Factors

Cash generation

Robust OCF ($4.2B) and FCF ($3.6B) in 2025 create a durable internal funding engine for dividends, buybacks, capex and disciplined M&A. Strong cash conversion cushions volatile earnings, funds reinvestment in brands and supports debt service, improving strategic optionality over months.

Resilient revenue base

Multi-year revenue growth to $20.4B reflects durable demand for staple CPG categories. Broad global distribution, repeat purchase behavior and scale in oral, personal and home care underpin predictable volumes and make revenue less cyclical, supporting steady midterm cash flow generation.

High-growth pockets: Hill's and emerging markets

Premium pet nutrition (Hill's >5% ex‑private‑label growth) and emerging-markets organic growth (~4.5%) create durable above-category growth drivers. Vet-recommended pet food and faster EM expansion improve mix and margin potential, providing structural contributors to sales and profit over months.

Negative Factors

High leverage / thin equity

An ~$8B debt load against extremely thin equity ($54M) produces an aggressive capital structure with limited cushion. This raises refinancing, covenant and solvency risk under stress, constrains flexibility for large strategic moves and elevates the cost of adverse shocks over the medium term.

Low and volatile category growth

Structural category expansion at ~1.5%–2.5% and a wide 1%–4% guidance range limit organic volume upside. Slower end‑market growth increases reliance on price/mix, productivity and M&A to drive meaningful top-line gains, making sustainable growth harder over the next several quarters.

Cost and portfolio pressures

Persistent raw-material inflation, tariff exposure and elevated promotional activity compress margins and force ongoing productivity programs. Management also disclosed impairments and portfolio adjustments, signaling some structural pressure that may require sustained reallocation or cost actions to restore returns.

Colgate-Palmolive Business Overview & Revenue Model

Company Description

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly to a range of traditional and eCommerce retailers, wholesalers, and distributors. It also includes pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic products to manage disease conditions in dogs and cats under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

How the Company Makes Money

Colgate-Palmolive primarily makes money by selling consumer packaged goods (CPG) and pet nutrition products to trade customers around the world. Its revenue model is largely volume- and price-driven: it manufactures or sources finished goods, sells them through retail and professional channels, and earns revenue recognized upon transfer of control of products to customers (typically when shipped/delivered based on contract terms). Key revenue streams include: 1) Oral Care: Toothpaste, toothbrushes, mouthwash and related products sold under the Colgate brand are a major sales engine. These products benefit from repeat purchase behavior and broad distribution, supporting steady revenue through frequent replenishment. 2) Personal Care: Soaps, body washes, deodorants and other personal care items sold under brands such as Palmolive, Sanex, and Irish Spring contribute incremental sales, often competing in mass-market and value segments. 3) Home Care: Household cleaning categories such as dishwashing liquids and other cleaners generate revenue through staple household consumption and retailer replenishment cycles. 4) Pet Nutrition (Hill’s): Hill’s Science Diet and Hill’s Prescription Diet generate revenue from pet food sold through pet specialty retail, e-commerce, and veterinary/professional channels. Prescription Diet products are tied to veterinary recommendation, and Hill’s can earn from both consumer demand and professional distribution. How earnings are supported: - Brand-driven pricing and mix: Strong brands allow the company to use a combination of pricing actions, premium product tiers, and product innovation to improve revenue per unit (mix) while maintaining scale. - Global scale and distribution: Colgate-Palmolive sells through large retailers, wholesalers, distributors, and online marketplaces; broad shelf presence and supply reliability help sustain volumes. - Trade promotion and customer programs: Like many CPG companies, it uses promotional spending (e.g., discounts, allowances, in-store programs) to drive sell-through and retailer support; these reduce reported net sales but are intended to expand volume and market share. - Input-cost management and manufacturing efficiency: While not a direct revenue line, cost management supports profitability on sales; gross margin depends on commodity inputs, packaging, logistics, and plant efficiency. Significant partnerships or factors contributing to earnings: Specific material partnerships are not available in this prompt (null).

Colgate-Palmolive Financial Statement Overview

Summary

Strong and improving cash generation (operating cash flow $4.2B; free cash flow $3.6B in 2025) and steady multi-year revenue growth support a solid operating profile. This is tempered by a highly aggressive capital structure (high debt with extremely thin equity) and weaker earnings momentum in 2025, which raise financial risk despite resilient operations.

Income Statement

Revenue has grown steadily from $16.5B (2020) to $20.4B (2025), pointing to a resilient top line. Profitability is solid with consistently strong gross profit levels, but earnings momentum is mixed: net income fell to $2.1B in 2025 from $2.9B in 2024, suggesting margin pressure and/or higher costs below the operating line despite stable operating profit.

Balance Sheet

Leverage is the clear weak spot. Total debt remains high at ~$8.0B (2025) while equity is extremely thin ($54M in 2025; $212M in 2024), which leaves little balance-sheet cushion and makes the company more exposed to shocks. While assets are stable (~$16B), the capital structure is aggressive and has become more equity-light over time.

Cash Flow

Cash generation is a major strength. Operating cash flow is strong and improving ($4.2B in 2025 vs. $4.1B in 2024), and free cash flow is robust at $3.6B in 2025 with positive growth. Free cash flow has generally tracked well versus earnings in the years provided, supporting flexibility for dividends, debt service, and reinvestment even when reported net income fluctuates.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.38B	20.10B	19.46B	17.97B	17.42B
Gross Profit	12.25B	12.11B	11.25B	10.15B	10.29B
EBITDA	3.96B	4.85B	4.25B	3.37B	3.76B
Net Income	2.13B	2.89B	2.30B	1.78B	2.17B
Balance Sheet
Total Assets	16.33B	16.05B	16.39B	15.73B	15.04B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.10B	966.00M	775.00M	832.00M
Total Debt	7.99B	8.51B	9.06B	9.27B	7.83B
Total Liabilities	15.96B	15.50B	15.44B	14.93B	14.07B
Stockholders Equity	54.00M	212.00M	609.00M	401.00M	609.00M
Cash Flow
Free Cash Flow	3.63B	3.55B	3.04B	1.86B	2.76B
Operating Cash Flow	4.20B	4.11B	3.75B	2.56B	3.33B
Investing Cash Flow	-817.00M	-534.00M	-742.00M	-1.60B	-592.00M
Financing Cash Flow	-3.26B	-3.39B	-2.79B	-952.00M	-2.77B

Colgate-Palmolive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Positive. The current price of 90.3 is below the 20-day moving average (MA) of 94.27, above the 50-day MA of 89.76, and above the 200-day MA of 84.00, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CL.

Colgate-Palmolive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$353.53B	20.05	31.23%	2.92%	1.23%	17.97%
CHD	73 Outperform	$23.25B	27.62	17.16%	1.38%	1.45%	42.04%
UL	69 Neutral	$141.93B	20.76	26.01%	3.74%	-0.30%	-14.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CL	61 Neutral	$72.38B	-429.64	431.59%	2.67%	-0.05%	2.49%
KMB	61 Neutral	$33.28B	16.63	155.28%	5.03%	-10.04%	-23.41%
CLX	56 Neutral	$13.55B	19.52	1502.49%	5.05%	-9.35%	123.06%

Colgate-Palmolive Corporate Events

Colgate-Palmolive Refreshes Board With New Bristol Myers Leader

On March 12, 2026, Colgate-Palmolive’s board elected Christopher S. Boerner, Board Chair and Chief Executive Officer of Bristol Myers Squibb, to join its board effective March 15, 2026, adding deep global pharmaceutical and healthcare experience to the consumer products group’s governance. Boerner, a veteran of Bristol Myers Squibb, Seattle Genetics, Genentech and McKinsey, will be compensated under Colgate-Palmolive’s standard non-employee director program, while Steven A. Cahillane has informed the board he will not stand for reelection at the May 8, 2026 annual meeting due to the demands of his new role as Chief Executive Officer of The Kraft Heinz Company, signaling a continued refresh of the company’s board with leaders from adjacent industries.

The most recent analyst rating on (CL) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.